Stimulus Check Update: $ 391 billion in funds sent as Americans gear up for monthly child tax credit payments
As more and more stimulus funds come out, Americans have another windfall to look forward to.
It has been about 2.5 months since the US $ 1.9 trillion bailout was enacted, and since then stimulus payments have stolen from recipients’ bank accounts or appear in their mailboxes as check or debit card. Last week, the IRS issued an additional 1.8 million payments, bringing the total number of payments issued to approximately 167 million.
In total, the government provided $ 391 billion in stimulus payments. This latter batch consisted of numerous payments resulting from processed tax returns. Although the tax filing deadline recently passed (this year it was extended to May 17), it is still not too late for those who think they are owed stimulus money. to file a 2020 return. Filers who do not owe money to the IRS will not be penalized for submitting their returns after the deadline.
At this point, a lot of people who were owed stimulus got that money. But if you’ve already spent yours, fear not. If you have kids, you might have another windfall coming soon.
Monthly Child Tax Credit Payments Coming Soon
The Child Tax Credit has long been available to tax filers, and until recently it was worth up to $ 2,000 per eligible child under 17. But in addition to allowing for a third round of stimulus checks, the American Rescue Plan also expanded the child tax credit, making it more lucrative for eligible recipients.
Now the credit is worth up to $ 3,600 per year for children under 6 or up to $ 3,000 for children 6 to 17 years old. Parents of 18-year-olds who are declared dependent can also get USD 500 per child through the credit. The same goes for children aged 19 to 24 who are students and are declared dependent for tax purposes.
Normally, the child tax credit is claimed once a year on an income tax return and it is paid out as a tax refund. This year, however, the credit will be paid differently.
First, the credit will be fully refundable (previously it was only $ 1,400), meaning that recipients will be eligible for their full credit even if it reduces their tax liability to less than $ 0. Second, half of the new child tax credit will be paid out in monthly installments of $ 250 or $ 300 per child starting in mid-July. These monthly payments will continue until December and the remainder of the newly expanded credit will need to be claimed in a 2021 tax return, which will be filed in 2022.
If you were eligible for a direct deposit stimulus payment, you should expect your monthly child tax credit payments to appear in your bank account as well. If you receive a stimulus in the mail, your child tax credit payments should also appear in your mailbox.
Another thing you need to know is that if the expanded child tax credit was only approved for one year, the Biden administration is pushing to keep it in place until 2025, so you might end up. by queuing for monthly checks on an ongoing basis. And that could prove to be quite useful, especially if that most recent third round of stimulus payments ends up being the last.
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